Professional Indemnity FAQ

Excesses - Costs Exclusive or Cost Inclusive

What is the difference between a “Costs Exclusive” Excess or a “Costs Inclusive” Excess?

When we look at an excess described as Costs Exclusive, we are actually saying that the excess will only apply to the actual settlement of a claim as opposed to a costs inclusive excess which means the excess applies to both the legal costs and the settlement.

The end result should mean that the end result is the same, you pay the excess. Where there is a benefit with a costs exclusive excess is in the timing of when it gets paid (at the timing of settlement) and even better if the matter is successfully defended and there is no settlement. No excess is then paid.

So from this point of view, a “costs exclusive” excess is much better to have but is not always available for most occupations or with most insurers.

Its availability also has a lot to do with market cycles and competition. For instance, the Accounting profession is very competitive at the moment and will offer it, but hard to find for engineers. In a soft market it seems everyone offers a “costs exclusive” excess while in hard market it is a rarity.

A skilled Broker must point out at renewal time if the excess has reverted to “Costs Inclusive” or seek to negotiate with the current insurer its retention. Not pointing out this change will get the Broker into trouble.

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

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CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

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